A new paper from the Bank of Italy takes stock of the country’s innovation system: strong public research output, but concentrated in mature sectors, with delays in digital, ICT and patents. The defense industry stands out as Rome’s crown jewel.
The big picture. According to the Bank of Italy, the country delivers solid scientific performance but fails to press the accelerator on emerging technologies: it holds the line rather than pushing forward.
- The exception is defense, where sustained investment in research and development allows Italian firms to compete successfully on the global stage, with cutting-edge technologies recognized in international markets.
The problem. Public research remains focused on mature sectors such as logistics, transport and civil engineering rather than digital and ICT.
- Universities and technology transfer offices (UTT) are understaffed and struggle to self-finance.
- Public spending on higher education (1% of GDP) and R&D (1.31%) lags behind the EU average.
By the numbers. Italy has held a steady ~3% share of global scientific publications between 2009 and 2023, with a focus on traditional fields.
- A 40% increase in high-quality STEM publications over the past decade (as defined by the paper’s quality metrics).
- Italian patents amount to roughly one-fifth of those filed by Germany and France, and far fewer than those from the US or China.
The weaknesses
- Dispersed resources: too many overlapping initiatives, little critical mass.
- Weak technology transfer: university patents fail to take off.
- Private-sector innovation remains overly reliant on external inputs and poorly connected to public research.
The bright side
- Italy retains a solid scientific capital base.
- Traditional sectors remain a competitive asset.
- The lag is mainly quantitative: closing the spending gap with the EU average would unlock significant margins.
What we’re watching. A roadmap exists: strengthen basic research, boost incentives for patenting, and rationalize funding for private-sector adoption of advanced technologies.
